The S&P 500 Hits Record Highs as NVIDIA Leads Tech Rally
The S&P 500 hit fresh record highs on Tuesday, with tech stocks leading the charge. NVIDIA Corporation (NASDAQ:NVDA) climbed more than 4%, driving the broader tech sector higher. This surge comes amid reports that the chipmaker has stopped taking orders for its H20 chips to comply with the U.S. export ban on semiconductor equipment to China.
Meanwhile, consumer confidence has hit a three-year low, raising concerns about the economy. The Conference Board’s Consumer Confidence Index fell to 98.7 from 105.6 in August, the biggest drop in three years. Worries about jobs and inflation were the primary reasons for the decline.
Federal Reserve speakers are closely watched as they discuss the possibility of further rate cuts. Governor Michelle Bowman emphasized caution, stating that inflation levels were above the Fed's 2% target. Other Fed members, like Neel Kashkari and Raphael Bostic, have differing views on the pace of rate cuts and the state of the economy.
In the corporate sector, Boeing (NYSE:BA) saw a 0.9% drop after offering a new labor deal to its striking workers. Deere & Company (NYSE:DE) rose 0.2% despite threats from former President Donald Trump regarding potential tariffs.
Overall, the market is experiencing record highs driven by tech stocks, but concerns about consumer confidence and future rate cuts linger. Investors should pay attention to upcoming economic data and Fed announcements to make informed decisions about their portfolios.